States are dedicating more resources for consumer protection in financial services to fill the vacuum of a potentially less aggressive CFPB. New Jersey Attorney General Gurbir Grewal, D, recently said in a press release that he and Gov. Phil Murphy, D, will “fill the void left by the Trump administration’s pullback of the Consumer Financial Protection Bureau,” and create what they referred to as a “state-level CFPB.” Murphy will name Paul Rodriguez as the director of the New Jersey Division of Consumer Affairs ...
The nature of the CFPB is completely in the eyes of the beholder. In hearings on Capitol Hill last week, Acting CFPB Director Mick Mulvaney was grilled by Democrats while Republicans praised his efforts to reform the bureau. Mulvaney appeared before the House Financial Services Committee and the Senate Banking, Housing, and Urban Affairs Committee last week to testify on the CFPB’s semi-annual report. The major changes he proposed included: giving Congress authority to approve ...
Staffers hired by Acting Director Mick Mulvaney saw major pay raises from their previous employment. The agency chief also asked Congress to change the pay system established by the Dodd-Frank Act. Since Mulvaney took over the bureau in November 2017, he has hired eight political appointees and four of them are paid more than $250,000 a year, according to salary records obtained by various media. “I can’t tell you the number of folks I know on the Hill, the number of folks I know in the White ...
After rounds of exchanging increasingly nasty letters, Sen. Elizabeth Warren, D-MA, finally got a face-to-face opportunity to question Mick Mulvaney, the acting director of her brainchild – the CFPB. In Mulvaney’s testimony before the Senate Banking, Housing, and Urban Affairs Committee last week, Warren turned her five-minute questioning time into a passionate speech generally claiming that Mulvaney is hurting the American people “Here’s what you don’t get, Mr. Mulvaney – this isn’t about me,” Warren said ...
The CFPB and the Office of the Comptroller of the Currency are seeking an aggregate of $1 billion from Wells Fargo to settle abuse allegations tied to its auto lending and home mortgage businesses, the megabank disclosed in its first quarter 2018 earnings report late last week. The auto lending violations center on collateral protection insurance policies the bank sold to customers between October 2005 and September 2016. Wells estimated $145 million in cash remediation and $37 million ...
Two payday-lending trade groups filed a lawsuit against the CFPB, seeking to invalidate the bureau’s payday lending rule and challenge its constitutionality. The Community Financial Services Association of America and the Consumer Service Alliance of Texas alleged that the agency’s payday lending rule, titled “Payday, Vehicle Title, and Certain High-Cost Installment Loans,” violates the Administrative Procedure Act. The two groups said the final rule was based on “unfounded” presumptions of consumer harm ...
Judges of the U.S. Court of Appeals for the D.C. Circuit late last week expressed concerns that Mick Mulvaney, who heads the Office of Management and Budget, would threaten the independence of the CFPB. A three-judge panel heard oral arguments in English v. Trump, a case challenging Mulvaney’s appointment by President Trump as acting director of the CFPB. Leandra English, named the bureau’s deputy director by former Director Richard Cordray before he left ...
The Consumer Financial Protection Bureau released its last two requests for information – one on financial education programs and another on the handling of consumer complaints and inquiries. Acting Director Mick Mulvaney has said before that consumer education would be one of the bureau’s priorities. In his testimony before the House Financial Services Committee last week, Mulvaney reiterated that he will pay more attention to financial education ...
Consumer complaints to the CFPB jumped in the first quarter, with a major surge in the area of credit reports, according to a new analysis by Inside the CFPB. Overall, total gripes to the bureau rose 22.9 percent from the fourth quarter of 2017 to the first quarter of 2018, and 11.0 percent year over year. Criticism about credit reports leapt by 120.3 percent from a year ago to 28,283, a 26.0 percent increase from 4Q17 to 1Q18. Experian ranks 1st by the number of [includes exclusive data chart] ...
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